Four major issues have put the central banks and tax administrations on alert:
A technology shaped for massive deployment
To illustrate the vitality of the ecosystem, the graph below shows its progression and diversification.
Figure : Breakdown of main cryptocurrencies in terms of capitalisation.[3] It is observed that bitcoin is now beginning to be challenged by many other virtual currencies. Source: Coinmarketcap.com
Hence numerous development scenarios are now open.
One thing is certain: the states still governing the world’s affairs today will not let a mechanism run riot that could undermine their vision and position as intermediaries in human and international relations. And, of course, cryptocurrencies are the tip of the blockchain iceberg. Practically, all sectors are becoming involved in this rollout, from logistics, to the Internet of Things, as well as the legal system and even football clubs like Paris Saint Germain…
The amounts invested in R & D in the four corners of the planet are such that, in our view, these applications will become fully operational and be launched in a big way in the next few years – within 2 to 5 years maximum.
Consequently, we are aware of the strength of the future impact on the real economy and the need for states to position themselves in this decentralised world. Yet, paradoxically, the current absence of regulation is cooling ardour and slowing things down.
The fundamental questions that states will have to answer are:
[1] Most blockchains use pseudonymity which does not allow you to hide identity in a safe way.
[2] The website icobench.com presents visual statistics making it possible to quickly perceive the current dynamics
[3] On this graph, 10 cryptocurrencies are named and represented. The phrase ‘Others’ corresponds to more than 1,900 other cryptocurrencies listed on the website coinmarketcap.com
[4] Status of the regulation country by country at the end of July 2018, since the borders of the net still exist. Some states do not hesitate to restrict access to certain sites, but these measures are not popular and are rarely implemented in democratic countries. Source: Bitcoin Market Journal, 27/07/2018
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